- OTC scheme in binary options
- But where does the firewood come from?
- The Secret of the Weekend Schedule
- Should I trade on the weekend or not?
- What to study on the weekend
- Poetry of living graphics
- Binary weekend
It's Sunday, and all active life has come to a standstill. Exchanges, charts, terminals, quotes do not work. This is a great time to educate yourself, finally sit down with a book on technical analysis and work with a frozen live chart.
However, what is it? For some brokers, such as IQ Option or OlympTrade, we see a fully working chart. Bidding is underway, bets are being made, and life is in full swing. How, strictly speaking, is this to be understood?
OTC scheme in binary options
The broker's interface on Saturday or Sunday immediately attracts our attention with the letters OTC next to each asset. Is the broker hinting at something to us? What does OTC stand for, what is it all about?
The abbreviation OTC stands for “Over-The-Counter” - that is, “over-the-counter”. When there is no single center where transactions take place, such as the New York Stock Exchange (NYSE), this is OTC. Let's say the entire Forex market is OTC by default.
However, we remember that binary brokers have nothing to do with exchanges anyway; all trading is carried out only between traders based on real quotes.
These quotes are taken from leading providers such as Thomson Reuters, Bloomberg, MorningStar and others. But – these suppliers only work from Monday to Friday, right? Right. This is why not a single terminal or chart functions.
However, on weekends, some brokers provide their clients with the opportunity to work... without official quotes.
This is OTC in the IQ version.
But where does the firewood come from?
Yes, but where, sorry, do they get quotes from, if all the suppliers in the world are closed on weekends?
They're sucking me out of thin air 
. I'm absolutely serious. On weekends, the OTS charts are made up of nothing. Invented. Drawn. Call it whatever you want.
The Secret of the Weekend Schedule
Eh, sorry, you say. What, they just took it and made a script that draws prices for us, with the left heel and that’s it? Well, not quite. Naturally, the broker will never admit to you how he makes this data - it’s in his interests, isn’t it.
But we can guess it ourselves. If official suppliers do not work, what remains? Make quotes yourself.
Often, charts are drawn based on previous trading weekdays, but they are changed beyond recognition, so that they look natural, and the trader cannot guess what day it is, they show us in a distorted form.
Imagine how easy it would be to trade on the weekend if we knew that the broker was showing us the same Friday upside down. But they reliably disguise it, of course.
Weekend trading. What are OTC options?
Nowadays, no one will be surprised by the fact that you can trade binary options even on weekends.
In the last article, we talked about interbank quotes and saw that all brokers work with quotes from intermediaries. Which, in turn, work with exchanges. Accordingly, they are taking a rest with the stock exchanges. Then what kind of conversation can there be about trading on the weekend? It turns out it can! How can it! After all, why waste time and money? That's why OTC options were invented!
So what is OTC in binary options ? What do over-the-counter options mean? Is it really possible to make money on OTC options over the weekend?
What are OTC options
Just to be clear, some people confuse OTC options with Bitcoin (BTC). A representative of a broker may even claim that bitcoins are traded on his platform on weekends. But I wouldn't really trust it...
We'll talk about what Bitcoin is a little later...
OTC (Over-The-Counter) options are over-the-counter transactions in assets that the broker offers to trade on weekends . That is, OTC options are virtual assets, quotes for which are generated by the broker’s platform.
In simple terms, the broker offers you an asset at its price and its terminal draws a chart, and you need to guess where exactly it will draw -)
OTC Options
It is worth noting, however, that over-the-counter trades and over-the-counter options do exist, but they are unlikely to have anything to do with binary options brokers.
Excerpt from Wikipedia, article “over-the-counter transaction”:
An over-the-counter option is a common type of over-the-counter transaction in which one party receives the right, but not the obligation, to buy or sell an asset. OTC options should not be confused with standard exchange options. For over-the-counter markets, an option is not a trading instrument, but rather a type of transaction, while for exchange trading, an exchange option is precisely a financial instrument.
And, if on weekdays the broker cannot escape the official quotes provided by the supplier, then over-the-counter options on the broker’s platform have nothing to do with real options trading.
It is difficult to say exactly how the broker imitates OTC quotes on its platform, but there is an opinion that quotes from previous days are taken, distorted and presented as separate.
If this is really the case, then everything is quite simple - just run a random function in real quotes and we will get a good gaming machine...
How to make money on weekends on OTC?
To be brief, you can make money trading OTC options just like using a slot machine! You can make money, or rather win, but it all depends on chance... Why?
Everything is very simple! In order to make money with binary options, it is not luck that is required, but daily work. You need to not guess where the price will go next, but analyze the market.
Based on technical and fundamental analysis, observing money management and becoming a trader psychologically!
In the case of OTC options, all of the above is simply impossible to do. It's impossible to analyze something that doesn't really exist.
Source: https://sergmedvedev.ru/binarnye-opciony/obuchenie-treiding/torgovlya-v-vyxodnye/
Should I trade on the weekend or not?
Now the news is good and bad at the same time.
- The bad: the charts of many brokers are already not a fountain, and even the quotes are wrong.
- The good: these quotes, although highly modified, are based on real ones.
It is precisely because of the bad aspect that I do not recommend that beginners dabble with OTC. Trading is already a complicated thing, and broker jokes add up.
But I can’t help but mention a good option. These quotes, distorted, disguised, are nevertheless made on the basis of real data. This means that there, in the broker’s chart, the same market heart beats.
Support and resistance lines, channels, trends, reversal patterns work...
There are even a couple of indicators...
Moreover, not only turbo options work, but also regular ones...
Therefore, an experienced trader can trade on weekends, even using such data.
However, the brokers' schedule is extremely poor. There is no normal choice of timeframes, it is impossible to scale the data properly, there is no choice of indicators (and even those are not displayed so well).
That's why. If you are such an experienced dude that you can already work with support and resistance lines by eye, then please, you will be fine in OTC and you need my advice like a stop-cock for a hare. But for everyone else, it’s better to calm down and finally get involved not in games, but in learning.
Branded drugs and generics
As market research shows, more than 70% of over-the-counter drug brands are more than 10 years old. The most successful of them can be over 50 years old (for example, Bayer aspirin, whose brand history goes back 100 years). In the practice of choosing the most suitable drug, it is necessary to take into account not only its effect on the human body, but also its cost.
To solve this issue, the concepts of original and generic drugs are introduced. The former are characterized by legislative protection in the field of intellectual rights to the active substance, that is, the presence of a patent confirming exclusive rights to the production and sale of the product. Such drugs are the most studied, and their cost is high.
Generics are medicines that contain an active substance for which patent protection has expired. They can be sold either under the original name or under a different one. Deciphering OTC drugs and classifying them as generics or original drugs presents certain difficulties for ordinary consumers, since there may be several dozen analogues at a lower price.
Since expensive drugs have high margins, this market segment requires government regulation. According to the legal act “Development of Competition in Healthcare”, developed by the Federal Antimonopoly Service of the Russian Federation, pharmacists are required to provide consumers with information about cheaper analogue drugs.
Many pharmaceutical companies in all countries of the world produce generic drugs. The main advantage of their production is that the effectiveness of the original products is comparable to generic OTC drugs. Sanpharma Ranbaxy (India) is one of such companies, whose products occupy a leading position in the Russian pharmaceutical market. Many of its brands have been known to Russians since the 90s. XX century (“Faringosept”, “Ketanov”, “Koldakt” and others). Medicines from this company are sold in more than 150 countries around the world. Sanpharma Ranbaxy is one of the top five global pharmaceutical manufacturers of generics.
What to study on the weekend
Take a live chart . He is now frozen, not moving. All the historical data is here - at your fingertips. NOW you can test all your indicators and concepts.
Draw support and resistance lines, channels, see how they work.
Place Bollinger and Stochastic . Rewind a few days. Look on different timeframes. Learn to SEE what exactly these tools show us.
It is on a frozen chart with its historical data that you can train your hand so that you will learn to work with a real chart when it comes to life on Monday.
Poetry of living graphics
Behind the cold indicators, novice traders often lose something very important. Any indicator is a mathematical abstraction based on a very simple principle: take the old price for a certain period, do something with it, and you’re done.
And the course is alive. And this is not a figure of speech. Look at it differently. This is a fight between bulls and bears, this is a fight between people, real traders in investment banks.
This is why indicators do not work like a magic button - they perform only mathematical operations, but do not take into account all the human trading psychology that lies behind the charts.
A schedule is creativity. And you are not limited in any way. Go to TradingView and you will see this.
A graceful butterfly soars in the darkness of the night... this is the Gartley butterfly
A cobweb froze between the tree branches...
Zigzag lightning flashes in the sky... Elliott waves and support/resistance lines
Night disco… strategy “Prism”
Some have very advanced spatial thinking:
Remember - after studying the basic principles of technical analysis, then only your imagination will be your limit. There are no boundaries. There are only basic rules, basic, fundamental ones - and on the basis of them you can build the castle of your strategy.
Of course, if it is tested in practice by the number of successful transactions
Winning the auction, signing the contract
If the applicant participating in the competitive procedures is recognized as a leader, he will have to work with the contract. First, you need to make sure of victory - on the third day, the customer is obliged to publish the protocol. In the next 5 days, a revised version of the contract is sent to the supplier for signing. In practice, customers often sin by making changes that significantly change the conditions specified in the tender documentation.
Participants are given no more than 20 days to exchange disagreements. This period must be met in such a way as to leave time for the opponent to work out the newly proposed wording.
The electronic platform is a full-fledged modern service. The trading platform takes clients from simply being interested in contracts to becoming eligible to participate with powerful tool support.
Binary weekend
Well, here they are, choose a trader’s weekend:
- broker's schedule with its restrictions;
- frozen live graphs as learning opportunities;
- vodka, women and restaurants;
- usual pleasant Sunday relaxation.
Each will find its own use for the weekend. Personally, I try to spend time with my family, read a book on technical analysis, and lazily go through the indicators that caught my attention.
Trading can be stressful, so the weekend is a time to recover, don't forget that. There is no need to play around with OTS, it’s better to rest and gain strength before working days.
